The AE Partnership is formed by five individuals who each contribute assets in exchange for a 20% interest in the capital/profits/losses. Calculate the following for each partner: (1) recognized gain or loss (2) each partners outside basis (3) the partnerships basis for each asset (inside basis) (4) the holding period of the partnership interest for the partner and the asset for the partnership. Assume all contributed assets will be used in the partnerships trade or business A. Arthur contributes business furniture with a market value of $10,000. The furniture cost $16,000 when purchased four years ago and Arthur's basis in the furniture is $5,000. B. Barbara contributes business equipment with a market value of $10,000. The equipment cost $20,000 when purchased two years ago and Barbara's basis in the furniture is $12,000. C. Courtney contributes business inventory with a market value of $10,000. The inventory cost $9,000 when purchased 16 months ago. D. David and Elizabeth contribute $10,000 cash each. A. Arthur has 11,000 gain, 5,000 basis, and 4 year holding period. The partnership has 5,000 basis and 4 year holding period in the business furniture. B. Barbara has 2,000 loss, 12,000 basis, 2 year holding period. The partnership has 12,000 basis and year holding period in the business equipment. A C. Courtney has 1,000 gain, 9,000 basis, holding period beginning on the date the interest was acquired. The partnership has basis 9,000 and holding period of 16 months in the business inventory. D. David and Elizabeth have no gain/loss, 10,000 basis, holding period beginning on the date the interest was acquired. The partnership has basis 10,000 and holding period beginning on the date of acquisition for the cash. A. Arthur has 0 gain/loss, 5,000 basis, and holding period beginning on the date of the interest was acquired. The partnership has 5,000 basis and 4 year holding period in the business furniture. B. Barbara has no gain/loss, 12,000 basis, holding period beginning on the date the interest was acquired. The partnership has 12,000 basis and year holding period in the B O business equipment. C. Courtney has no gain/loss, 9,000 basis, holding period beginning on the date the interest was acquired. The partnership has basis 9,000 and holding period of 16 months in the business inventory. D. David and Elizabeth have no gain/loss, 10,000 basis, holding period beginning on the date the interest was acquired. The partnership has basis 10,000 and holding period beginning on the date of acquisition for the cash. A. Arthur has $11,000 loss, 5,000 basis, and 4 year holding period. The partnership has 5,000 basis and 4 year holding period in the business furniture. B. Barbara has $2,000 gain, 12,000 basis, 2 year holding period. The partnership has 12,000 basis and year holding period in the business equipment. CC. Courtney has $1,000 loss, 9,000 basis, holding period beginning on the date the interest was acquired. The partnership has basis 9,000 and holding period of 16 months in the business inventory. D. David and Elizabeth have no gain/loss, 10,000 basis, holding period beginning on the date the interest was acquired. The partnership has basis 10,000 and holding period beginning on the date of acquisition for the cash. A. Arthur has 0 gain/loss, 5,000 basis, and 4 year holding period. The partnership has 5,000 basis and 4 year holding period in the business furniture. B. Barbara has no gain/loss, 12,000 basis, 2year holding period. The partnership has 12,000 basis and year holding period in the business equipment. D C. Courtney has no gain/loss, 9,000 basis, holding period beginning on the date the interest was acquired. The partnership has basis 9,000 and holding period of 16 months in the business inventory. D. David and Elizabeth have no gain/loss, 10,000 basis, holding period beginning on the date the interest was acquired. The partnership has basis 10,000 and holding period beginning on the date of acquisition for the cash.Refer to the previous Question, but assume David and Elizabeth made the following contributions instead of cash. How do these new facts change your answer for each partner? A. David contributes land with a market value of $16,000. David acquired the land 10 months ago for $9,000 cash. B. Elizabeth contributes land with a market value of $18,000. Elizabeth received the land three years ago as a gift from a relative and has basis of $5,000 in the land. In addition, Elizabeth transfers a $8,000 mortgage (nonrecourse debt) on the land to the partnership. A. David has no gain/loss, 9,000 outside basis, and a holding beginning on the date of the contribution. The partnership's basis in the land is 9,000 and the partnership's A holding period is 10 months. B. Elizabeth has no gain/loss, 1,000 initial outside basis, and a holding beginning on the date of contribution. The partnership has basis of 5,000 in the land, and a holding period of 3 years. The outside basis of other partners increases by 1,000. A. David has no gain/loss, 10,000 outside basis, and a holding period of 10 months. The partnership's basis in the land is 9,000, and holding period is 10 months. BO B. Elizabeth has no gain/loss, 1,000 initial outside basis, and a holding period is 3 years. The partnership has basis of 5,000 in the land, and a holding period of 3 years. The outside basis of other partners increases by 1,000. A. David has no gain/loss, 9,000 outside basis, and a holding period of 10 months. The partnership's basis is 10,000 in the land, and holding period is 10 months. C O B. Elizabeth has no gain/loss, 1,000 initial outside basis, and a holding period is 3 years. The partnership has basis of 5,000 in the land, and a holding period of 3 years. The outside basis of the other partners is not affected. A. David has no gain/loss, 16,000 outside basis, and a holding period of 10 months. The partnership's basis is 16,000, and holding period is 10 months. DO B. Elizabeth has no gain/loss, 1,000 initial outside basis, and a holding period is 3 years. The partnership has basis of 5,000 in the land, and a holding period of 3 years. The outside basis of the other partners is not affected